How This (Asset) Cycle Finally Ends

The last 4 days have reminded everyone of one of the core tenets of modern finance - the thing we clearly stated in January 2022 (and every year before and since), namely every tightening cycle ends in a "credit event" and then we go back to square one.

Remember, every Fed tightening cycle ends in disaster and then, much more Fed easing pic.twitter.com/zX7Dur8nLG

— zerohedge (@zerohedge) January 5, 2022

But while we all know the endgame, there is still some questions as to the specific steps that get us there.